Economy

Finance Ministry absorbs Dept of Public Enterprises

Shishir Sinha New Delhi | Updated on July 07, 2021

Move to facilitate faster decisions on PSU disinvestment

To have better control government-owned firms and a firm handle on the divestment programme, the Department of Public Enterprises (DPE) has been merged with the Finance Ministry. The DPE was a part of the Ministry of Heavy Industries and Public Enterprises.

The Cabinet Secretariat notified an amendment to the Government of India (Allocation of Business) Rules, 1961, which prescribes including the Department of Public Enterprises (Lok Udyam Vibhag) under the Fiannce Ministry. The amendment comes into force immediately.

Is it time to rethink PSE policy?

As on date, the Finance Ministry has five departments: Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management, and Financial Services. Since one of its departments is dealing with PSUs, bringing the DPE under the Finance Ministry will make co-ordination easier.

New disinvestment policy cleared by the Cabinet

Commenting on the move, Nirmal Gangwal, Managing Partner at Brescon & Allied Partners LLP, said the government’s revenue mop-up cannot be limited to tax collection, and the focus should now be on monetising and realising the value created by PSUs.

The Heavy Industry Ministry will continue to be the nodal one for the automobile and capital goods sector. It will have 44 areas for administrative work, including certain PSUs such as BHEL, Cement Corporation, and Scooters India.

 

 

 

Published on July 07, 2021

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